The chart below represents the relationship of the Dow Jones to an ounce of gold. Things to note...very long uptrend broken (white line), very long support/resistance line broken (light blue), well below average since 1979 lows (green line), we are at a 30% retracement from most recent low (cyan text) which compares well with all previous major retracements in this down-cycle... a fat juicy extrapolated target seems to be waiting for the DOW below 5000 and Gold over $1000?
The same from 30,000 feet: we are still way too high for the average downturn....
Buy Gold, sell not-Gold?
hat tip Tim
Sphere: Related Content
Print this post